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The problem — again, in America — is that residential rents are by far the largest component of unreported income. Exemptions mean nothing to petty criminals wh

The problem — again, in America — is that residential rents are by far the largest component of unreported income. Exemptions mean nothing to petty criminals who are already not effectively taxed. The market mechanism that precludes tax pass-through is the price is already set as high as the market will bear. If landlords could raise the rent to pass through a new tax then they would have done so already without the tax.

adolph 3y ago
Where do you find that residential rent is highest unreported income? Last figure from IRS I see is 2014-2016 and rent was a quarter the size of non-farm proprietor: https://www.irs.gov/pub/irs-pdf/p1415.pdf#page23 https://www.irs.gov/pub/irs-pdf/p1415.pdf#page23 What percentage of total rents are unreported? One would expect that the majority of rents are collected by professional management companies subject to reporting requirements that make underreporting unfeasible. Maybe that is an incorrect baseline? What makes you think that rents are already as high as the market will bear? After all, rents keep rising, right?